Prime Trust Estate Administrator Wins $9 Million Default Judgment Against Justin Sun's Poloniex

According to Protos, the Prime Trust bankruptcy estate administrator has obtained a default judgment of approximately $9 million against Poloniex, the exchange under Justin Sun. The case involves a lawsuit to recover funds from preferential transfers made prior to the bankruptcy. Prior to its bankruptcy filing, Prime Trust decided to terminate its partnership with Poloniex and other entities affiliated with Justin Sun following a now-dismissed lawsuit brought by the U.S. Securities and Exchange Commission (SEC), at which point it had transferred over $9 million to Poloniex and Sun. Prime Trust subsequently became severely insolvent due to its failure to properly custody crypto assets and its misappropriation of customer deposits to cover funding gaps, prompting it to file for bankruptcy and initiate this case to recover the relevant funds. At present, the judgment only applies to Polo Digital Assets LTD, the operating entity behind Poloniex, while Prime Trust is currently pursuing discovery against Justin Sun personally. Separately, the FTX estate administrator has also filed lawsuits against Justin Sun personally, as well as against his exchanges HTX and Poloniex.